A survey has highlighted the necessity to give financial support and other needed tools to Minority Business Enterprises to boost financial sophistication to deal with fund managers.
The need to empower minority owned businesses has become an economic imperative that has downed on states and the U.S nation at large on the need to empower small scale businesses that have been left out of the process all along.
Risk capital provided by venture capitalists like Facebook and Google for startups has recorded a lack of inclusion of MBEs which are businesses that is at least 51 percent owned by minority group members.
This inclusion determines who receives funding, as entrepreneurs of color and women entrepreneurs are substantially less likely to raise venture capital than white men.
In August 2015, representatives of the largely white-male venture capitalist profession met with President Obama to advance opportunities for underrepresented groups and women in the entrepreneurial ecosystem.
Although black-owned businesses are an engine of economic growth in the U.S., they have suffered countless issues of marginalization in securing access to funds.
These issues which impede MBEs range from lack of growth-oriented succession plan for business owners to the inability of minority-owned business enterprises to identify and obtain capital funding.
Also, the negative perception of venture capital among MBEs and the lack of tools and skills to educate minority business owners in the means and best practices of raising capital and the MBE certification requirements are issues of concern.
National Minority Supplier Development Council (NMSDC), a corporate membership organization that promotes business opportunities for minority-owned businesses and connects them to corporations has released a survey.
The survey “focuses on the internal factors, those within a minority firm’s control, which may hamper their ability to obtain critical growth or acquisition capital.”
According to the survey, Minority Business enterprise (MBE) is at least 51 percent owned by minority groups. These are at least one-quarter Asian-Indian, Asian-Pacific, Black, Hispanic or Native American.
NMSDC stresses the need of education which improves access to capital among MBEs, including online and on-site methods to teach best practices for high-growth entrepreneurship and fundraising.
They have also affirmed the necessity to give needed tools to boost financial sophistication to deal with fund managers.
The report also spoke to the need for more networking opportunities between minority entrepreneurs and those who provide the capital.
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